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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-2.94 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -2.94 suggests that the company is not a manipulator.

PAM' s Beneish M-Score Range Over the Past 10 Years
Min: -6.61   Max: 2.82
Current: -2.94

-6.61
2.82

During the past 11 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -6.61. And the median was -2.91.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9771+0.528 * 0.6281+0.404 * 0.9441+0.892 * 1.1868+0.115 * 0.7771
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2678+4.679 * -0.0735-0.327 * 0.9225
=-2.94

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $271.7 Mil.
Revenue was 217.749257143 + 200.877142857 + 194.274057143 + 189.941714286 = $802.8 Mil.
Gross Profit was 3.8448 + -0.529142857143 + 14.0118857143 + 2.41371428571 = $19.7 Mil.
Total Current Assets was $860.2 Mil.
Total Assets was $2,736.7 Mil.
Property, Plant and Equipment(Net PPE) was $1,452.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $76.9 Mil.
Selling, General & Admin. Expense(SGA) was $222.0 Mil.
Total Current Liabilities was $1,094.2 Mil.
Long-Term Debt was $586.8 Mil.
Net Income was 4.60217142857 + 6.98022857143 + 103.0792 + 83.1973714286 = $197.9 Mil.
Non Operating Income was -18.2347428571 + -23.2865142857 + 61.9629714286 + -9.85131428571 = $10.6 Mil.
Cash Flow from Operations was 96.6953142857 + 127.838971429 + 90.5225142857 + 73.4428571429 = $388.5 Mil.
Accounts Receivable was $234.3 Mil.
Revenue was 185.2912 + 170.28 + 163.589371429 + 157.287314286 = $676.4 Mil.
Gross Profit was 5.368 + -0.6256 + 12.9084571429 + -7.20422857143 = $10.4 Mil.
Total Current Assets was $510.6 Mil.
Total Assets was $1,761.1 Mil.
Property, Plant and Equipment(Net PPE) was $961.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.1 Mil.
Selling, General & Admin. Expense(SGA) was $147.5 Mil.
Total Current Liabilities was $734.2 Mil.
Long-Term Debt was $438.5 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(271.700571429 / 802.842171429) / (234.297257143 / 676.447885714)
=0.33842339 / 0.34636409
=0.9771

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.529142857143 / 676.447885714) / (3.8448 / 802.842171429)
=0.01544336 / 0.02458921
=0.6281

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (860.200685714 + 1452.8424) / 2736.68857143) / (1 - (510.554971429 + 961.791885714) / 1761.12651429)
=0.15480223 / 0.1639744
=0.9441

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=802.842171429 / 676.447885714
=1.1868

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(39.1164571429 / (39.1164571429 + 961.791885714)) / (76.9298285714 / (76.9298285714 + 1452.8424))
=0.03908096 / 0.05028842
=0.7771

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(221.955314286 / 802.842171429) / (147.503771429 / 676.447885714)
=0.27646195 / 0.21805637
=1.2678

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((586.824342857 + 1094.20388571) / 2736.68857143) / ((438.475542857 + 734.1984) / 1761.12651429)
=0.61425631 / 0.66586582
=0.9225

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(197.858971429 - 10.5904 - 388.499657143) / 2736.68857143
=-0.0735

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -2.94 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.46250.49210.75131.32241.05231.54141.1018
GMI 1.59381.0931.0541.83872.3609-1.0086-1.7772
AQI 0.26911.08390.77042.14650.78030.59691.1507
SGI 1210.49672.71351.01981.42171.15050.79681.163
DEPI 3.20070.50331.08850.8211.06331.1361.0677
SGAI 0.03550.88341.14781.09251.00281.63641.197
LVGI 4.9181.11490.93571.26571.15641.25151.0047
TATA -0.0243-0.0633-0.0942-0.1359-0.1441-0.0662-0.1315
M-score 1,075.86-1.71-3.19-1.66-2.39-3.87-4.29

Pampa Energia SA Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.27441.14681.53731.69771.6971.38951.10180.92310.94210.9771
GMI -6.2017-2.2308-0.9659-0.8434-4.082-1.8546-1.7772-0.33860.12620.6281
AQI 0.68180.76010.59690.57160.86880.79621.15071.14481.0730.9441
SGI 0.9530.8480.7990.80920.9561.071.1631.20451.17741.1868
DEPI 1.14281.10881.1361.34771.10341.41291.06771.09571.0280.7771
SGAI 1.29981.44331.60151.55361.25641.19611.24941.2621.32851.2678
LVGI 1.15581.2291.25151.28791.18741.14411.00470.86850.8820.9225
TATA -0.0616-0.0827-0.067-0.0626-0.1314-0.1687-0.1196-0.0956-0.1187-0.0735
M-score -6.57-4.81-3.85-3.60-5.32-4.47-4.24-3.45-3.38-2.94
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